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Foord International Feeder Fund

CLOSED TO NEW INVESTMENT

For conservative, absolute return-oriented investors in global markets

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INVESTMENT OBJECTIVE

The fund aims to achieve meaningful inflation-beating US$ returns over rolling five-year periods from a conservatively managed portfolio of global investments reflecting Foord's prevailing best investment view.

FOR SOUTH AFRICAN INVESTORS

•    With a moderate risk profile
•    Requiring diversification through investments not available in South Africa
•    Seeking to hedge rand depreciation.

Performance

Returns
Year Fund Return % Benchmark Return % SA Inflation %
2006 (from 01/Mar) 24.9 28.4 5.0
2007 9.2 4.6 8.9
2008 12.6 -19.0 9.5
2009 -6.9 -1.4 6.3
2010 -1.7 -1.6 3.5
2011 19.1 15.9 6.1
2012 16.4 22.3 5.7
2013 42.5 57.7 5.4
2014 8.7 16.3 5.3
2015 36.1 33.3 5.2
2016 -10.5 -3.9 6.8
2017 4.2 10.9 4.7
2018 4.1 6.4 4.5
2019 14.5 25.3 4.0
2020 12.3 22.3 3.1
2021 (to 30/Jun) 3.1 10.2 2.7

Characteristics
Benchmark

To achieve meaningful US inflation-beating ZAR equivalent returns over a full investment cycle.

Time horizon

Longer than three years.

Inception date

1 March 2006

Minimum investment

R50 000 lump sum or R1 000 per month

Significant restrictions

The portfolio may only invest in cash and one other collective investment scheme.

Income distributions

The Foord International Fund, in which the fund invests, does not distribute its income.

Income characteristics

Marginal to zero income yield as the Foord International Fund is a roll-up fund and does not distribute its income.

Portfolio orientation

Fully invested in the Foord International Fund, sub-fund of Foord SICAV, domiciled in Luxembourg.

Risk of loss

Currency volatility means risk of loss in the short term is high. In general, the risk of loss is lower than that of the average foreign equity fund.

Top 10
Security description Asset class Market Portfolio weight %
FMC Corp Equity US 7.9
ETFS Physical Gold Commodity GB 6.4
Nestle Equity CH 5.9
SSE PLC Equity GB 5.6
CVS Health Corp Equity US 5.0
Alphabet Inc Equity US 4.4
Freeport-McMoran Inc Equity US 4.3
Wheaton Precious Metals Corp Equity US 4.1
Roche Holding AG Equity CH 4.0
Wharf Real Estate Investment Property HK 3.8
Commentary

Monthly Commentary – June 2021

  • Global equities (+1.4%) took fright when the US Federal Reserve brought forward to 2023 the date by when it expected US interest rates would first rise—but later settled as the Fed downplayed inflation, supported by positive economic data and vaccination rollout
  • Developed market equities (+1.4%) rose with US bourses (+2.8%) outperforming on the $1 trillion infrastructure stimulus announcement and the gradual return to normalcy—emerging markets (+1.3%) also rose, led by oil-driven Brazil (+5.5%) and Russia (+4.1%)
  • Developed market bond yields declined despite US and Eurozone inflation rising faster than expectations—the Fed attributes the rise in inflation to transitory factors
  • The US dollar appreciated against the euro (-3%), British pound (-2.8%) and Japanese yen (-1.4%)—as investors bet that the US Fed would not tolerate runaway inflation after it brought forward its anticipated rate-hike timeline from 2024
  • Commodities retraced as the dollar strengthened—precious metals gold (-6.9%) and silver (-6.7%) and industrial bellwether copper (-7.6%) fell sharply
  • Swiss healthcare company, Roche (+8.4%) and the Hong Kong real estate developer, Wharf Holdings (+10.4%) contributed most to the fund’s performance—commodity geared stocks Freeport-McMoran (-13.1%) and FMC (-6.9%) were the key detractors
  • The rand (-4.0% vs the US dollar) retraced some of its recent gains on dollar strength, lower commodity prices and a rampant COVID-19 third wave—while further short-term strength is possible, the unit remains structurally vulnerable longer term
Fees

The standard charge rate is a fixed fee of 0.35% plus VAT. A 1.00% annual fee is levied in the Foord International Fund.

WHAT IF YOU HAD INVESTED WITH US IN THE PAST?


Experience the compounding phenomenon of a sustained, long-term investment with Foord.

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Currency
Using rand returns of Foord’s best investment view South African funds. ? In calculating the current value of your hypothetical investment, we have applied the returns of Foord Asset Management’s retirement fund track record from 1 January 1990 to 31 March 2008 (gross of fees) combined with the net returns of the Foord Flexible Fund of Funds from 1 April 2008. Any information provided is not intended nor does it constitute financial, tax, legal, investment, or other type of advice, and the suitability or potential value of any information or particular investment source is not guaranteed. Performance may be affected by changes in the market or economic conditions and legal, regulatory and tax requirements. Distributions may be subject to mandatory withholding taxes. Foord does not provide any guarantee either with respect to the capital or the performance return of investments.
Using US dollar returns of Foord’s best investment view global fund. ? In calculating the current value of your investment, we have applied the long-term returns of the Foord International Trust. These returns are calculated net of fees. Past performance is no guarantee of future performance. Foord Asset Management (Singapore) Pte. Limited disclaims any liability for any loss, liability, or damages (whether direct or consequential) of any nature whatsoever that may be suffered as a result of, or which may be attributable, directly or indirectly to the use of or reliance upon the information provided.
Value Today: R0
Annualised Return: 0%
The annualised return is the effective annual percentage return achieved over the term of the investment. Results for an investment term of less than one year should be treated with caution.

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